Second quarter and first half-year 2020

GC Rieber Shipping ASABergen 24 August 2020

Agenda

• Highlights Q2 2020

• Operational review

• Financial review

• Outlook

• Fleet utilisation of 99%1

• Net loss of NOK 121.3 million (Net profit of NOK 93.9 million in Q2 2019 including sale of Ernest Shackleton)

• Impairment of Subsea & Renewables vessels of NOK 128.7 million

• Contract backlog of NOK 194 million as of 1 July 20202

• Significant industry and company uncertainties due to the COVID-19 outbreak and volatile oil price

• Extension of the Polar King charter with Nexans by two months until September 2020

• Shearwater3 awarded new contracts for marine seismic acquisition projects in India, Brazil and the UK North Sea, but also received project termination notices for two contracts in the Asia Pacific

Highlights Q2 2020

1) Excluding marine seismic

2) Excluding marine seismic and options, including all contracts secured up until the reporting date for the interim report

3) Shearwater GeoServices Holding AS owned 19% by GC Rieber Shipping

• GC Rieber Shipping has entered into an agreement to sell the IMR vessel Polar King with delivery in the third quarter of 2020

Post-quarter events

Highlights Q2 2020 - Key financial figures

92

74

43 44

78

0

20

40

60

80

100

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

41

65

42

58

38

-80

-60

-40

-20

0

20

40

60

80

100

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

REVENUE NOK million

EBITDA1

NOK million

94

17 8

-302

-121

-350

-300

-250

-200

-150

-100

-50

0

50

100

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

NET PROFITNOK million

1) Includes profit and losses from Joint Ventures & Associates

Operational ReviewQ2 2020

Total contract backlog of NOK 194 mill. as of 1 Jul. 20201

Including all contracts secured up until the reporting date for the interim report

86%

21%

0%

20%

40%

60%

80%

100%

From 1 Jul. 2020 2021

135

59

0

50

100

150

From 1 Jul. 2020 2021

CONTRACT COVERAGEUtilisation rate

CONTRACT BACKLOGNOK million

1) Excluding marine seismic and extension options

Subsea & Renewables Segment

• Fleet utilisation of 98% in Q2

• Polar King and Polar Onyx on charter for the entire period, Polar Queen on charter from early April

• Outlook

• Polar Onyx on a fixed charter with DeepOcean until Q1 2021, with options for two more years

• Polar Queen on charter until medio September 2020

• GC Rieber Shipping has entered into an agreement to sell Polar King

6774

43 44

78

23

32

9

-1

35

-20

20

60

100

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Operating income EBITDA

Fleet utilisation (%)

KEY FIGURESNOK million

100 %

67 %67 %

Polar Onyx • SURF vessel, built

2014

• LOA: 130m

• Crane: 250mt

• VLS-tower: 275mt• Accommodation: 130

98 %

100 %

Polar King • CSV vessel, built

2011

• LOA: 111m

• Crane: 150 mt

• Accommodation: 112

Polar Queen• CSV vessel, built 2011

• LOA: 111m

• Crane: 150 mt

• Accommodation: 119

Joint Ventures – Ice/Support

• Ice/Support

• Fleet utilisation of 100% in Q2 2020

• Polar Pevek on charter to Exxon Neftegas(ENL) until 2021

• Polar Baikal and Polar Piltun on charter with Sakhalin Energy Investment Corporation until end of 2020 with options for one additional year1

• Share of profit in Q2 2020 of NOK 11 million 7

17

13

7

11

0

5

10

15

20

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

SHARE OF PROFITNOK million

Polar Pevek• Ice breaking tug with

towing anchor

handling capacity

• LOA: 74m

• Oil spill drip tray and

oil containment

system installed

Polar Baikal

• Crew supply vessel

• LOA: 29m

• Used for crew

transport between

shore and installation

in North Eastern

Russia

• Pax: 70

Polar Piltun • Crew supply vessel

• LOA: 35m

• Used for crew

transport between

shore and installation

in North Eastern

Russia

• Pax: 70

1) Polar Baikal and Polar Piltun only operate for half the year, the

vessels are cold stacked in the winter season

Associated company - Marine Seismic(Shearwater)

• Marine Seismic (Shearwater)

• GC Rieber Shipping’s Q2 2020 share of profit was negative NOK 8 million

• Following the oil companies’ capex reductions GC Rieber Shipping expects a challenging seismic market with substantially lower activity and rate pressure going forward

• Shearwater’s USD 325 million bridge-to-bond facility, which originates from the acquisition of WesternGeco’s marine seismic business in 2018, is maturing in November 2020

-8

16

21

-2

-8

-20

-10

0

10

20

30

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

SHARE OF PROFITNOK million

• 18 High Capacity 3D Streamer Vessels

• 3 Multi Purpose Vessels

• 2 Source Vessels

Financial ReviewQ2 2020

Income Statement

NOK mill Q2 2020 Q2 2019 YTD 2020 YTD 2019 31.12.2019

Operating income 78.5 91.9 122.9 140.0 257.3

EBITDA 37.6 41.3 95.4 -20.8 86.9

EBIT -121.7 108.5 -388.8 16.1 67.0

Net financial income and

expenses

0.4 -14.6 -34.1 -26.6 -52.8

Profit before tax -121.3 93.9 -423.0 -10.6 14.1

Net profit -121.3 93.9 -423.0 -10.6 14.4

Earnings per share -1.41 1.09 -4.91 -0.12 0.17

Number of shares (in million) 86.1 86.1 86.1 86.1 86.1

Balance sheet 30.06.2020

231116

74

1158

2475

1506

0

500

1 000

1 500

2 000

2 500

3 000

Assets Equity & Liabilities

Fixed assets

Other current

assets

Cash & liquid

assets

Equity

Long-term

liabilities

Current

liabilities

NOK million

• Total balance NOK 2.8 billion

• Equity ratio 54.1%, down from 59.5% at 30.06.2019

• Cash position NOK 231 million

• Net liabilities NOK 1.0 billion

OutlookQ2 2020

Outlook

• The coronavirus disease (COVID-19) outbreak has stirred market fundamentals in a short amount of time, increasing uncertainty across industries world-wide

• Highly volatile oil price

• Further impact of the above factors on the offshore industry and GC Rieber Shipping’s business is uncertain

• Improvement in market conditions is not expected in the short term